Atterbury ace team Heloise van Niekerk and Catherine Bosman along with Purple Plumms’ marketing team and Attacq’s Michael Clampett, shed some light on what made Christmas extra special at shopping centres, especially Mall of Africa’s Christmas pantomime debut.
What did our shopping centres do to beat the competition?
Even though a vast array of events and entertainment was on show at most retail shopping centres, great emphasis was placed on service excellence in close relationship with retailers and service providers. Mall specific extended shopping hours, clean facilities, parking availability and a secure shopping environment were the focus over the festive season. We concentrated on targeted promotions taking specific audiences, age, gender, interest and location into consideration through our partnership with FATTi.
How important is having good entertainment and décor to a mall’s festive trade?
Trade over the festive season is undeniably influenced by human senses and less so by the normal rational thinking which usually dominates throughout the year. Great Christmas décor, food and entertainment plays a prime role in the annual sales of the retail trade and is expected by the consumer. To get customers in the mood, shopping centres sparkle inside and out with a Christmas shine.
What impact did online shopping have this festive season?
The switch to e-commerce is definitely on the rise, and more South African consumers are shopping online to avoid cash purchases and long queues over the festive season.
In the past 12 months South Africans spent an estimated R37,1 billion on online purchases, and the number is expected to grow to R53 billion by 2018. These figures were obtained from the third annual global report on cross-border trade compiled by digital payment platform PayPal and market research giant Ipsos. In the report‚ which investigates the domestic and cross-border shopping habits of more than 28 000 consumers in 32 countries‚ 58% of adults in SA with internet access were said to have shopped online in the last year.
Mall of Africa experienced excellent festive retail sales performance in a weak economic environment. Why?
A major reason is the fact that the tenant offering at Mall of Africa is broad and thus customers chose to do their festive shopping at one venue, rather than visit multiple shopping malls, to access the same brands. Regionally, sales remained robust over the festive season whereas more competition in urban areas meant tougher trading conditions.
How is the shopping centre industry in South Africa different from this time last year? Is it better off?
Atterbury opened eight shopping centres in 2014 alone and Mall of Africa toward the end of 2016, so these new centres have stabilised since opening and 2016 brought even further growth in terms of the strengthened retail nodes.
Growth of the industry is influenced by economic conditions that consumers find themselves in. Amongst others, inflation, the interest rate and economic growth are reasons why consumers appear to be more aware of their spending, this creates competition between retailers, which can lead to increased consumer spending. The shopping centre industry displays growing Christmas spending trends year after year, but our economic climate is providing challenges to ensure positive growth throughout the year. Ever increasing online shopping has made it easier for items be delivered to the customer’s door, however the appeal of one’s senses to see, feel, touch, compare and ultimately fit a garment continues to be a driver for shoppers to visit malls.
What was on the top of most South African’s holiday shopping lists?
Technology and electronics (specifically the Apple watch), sports gear and equipment (healthy lifestyle drivers) and of course fashion, following the rise of international fashion brands trading in South African retail centres. Toys are an obvious choice for families, with teenagers starting to ask for gift cards or vouchers for their own selection of goods. Lastly, food and beverage goods and hampers for the obvious festive celebrations as well as the rising ‘foodie’ culture of people searching for the most exciting gastronomic experiences.
Do shopping centres have a positive social/economic impact on the communities they serve during the festive season?
The strength of a countries GDP has proven to have a direct relationship on anticipated Christmas spending. Due to this connection, shopping centres do have an economic impact on communities. South Africans have a shopping centre culture due to the lack of street stores and lack of public spaces, so this further affects the community due to restricted public community experiences available. This is also partially the reason for South Africa having the sixth most shopping centres in the world. Alternative activities for entertainment are limited to the offerings provided at shopping centres such as meeting up and the more traditional offerings such as movies, ice rinks, bowling, and the latest trend of trampolining – these all bring community members together. As not everyone can afford the experiences on offer, marketing strategies over Christmas are focused about ‘giving’ whether the act of giving for charity or social projects or making giving an experience. Being in retail property we believe that our intention through the spaces we create and provide to the market do in fact have an important positive social and economic impact on our communities.
What is the outlook for retail property in 2017?
Retailers, specifically nationals continue to show growth through their expanding offerings and increased service delivery, where line shops continue to compete for their cut of the limited/reduced spend available. Store credit provides for increased spending ability as well as any consumers utilising their ‘loyalty’ points to cash in on the associated products available from the specific partners, which could affect the distribution of the spending categories. Marketing strategies could be aimed at indirect target markets and campaigns to ensure spending in retail, dare I mention ….Stikeez! Overall, an outlook on retail property in 2017 is a subtle but muted growth which will provide increased challenges to ensure tenant sustainability and consumer market share.
What type of retailers lured the most festive spend this year? And, which retailers were least attractive to shoppers?
Jewellery, sunglasses, electronics, music and games lead the pack for most sought after items, with photography and furniture sales being less of a priority over the festive season.
